What are the Disadvantages?
To be fair, there is always two sides to a situation or a position and as there are advantages to anything there must also be disadvantages. Frankly, about the only disadvantage to retaining a property management company is its effect on your profit margin. The average company will require the first month’s rent as its first payment and then 10% to 15% of each month’s rent after that. This first month’s payment requirement covers their expense for any advertising, showing the property, processing an applicant, credit administrative costs, and other general expenses that come with setting up a new tenant.
If your goal is to have the tenant pay your mortgage with the rent, you will need to factor in the costs of the management company to determine feasibility.
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